Ace Lawn Care Module 3 Mini Pracfice Problem In June, Jim decided to open a smal

Question

Ace Lawn Care Module 3 Mini Pracfice Problem In June, Jim decided to open a small retail operation selling bags of fertiäzer to the pubíic. He has decided to begin by offering two kinds of ferikzer. Below is the informmation for the monm of June, 2014, for the two types of ferfilizer. Feed All Ferfikzer weed and Feed Al Fertilizer Selling Price $27.00 $35.00 Purchase Data Date 6/1 /2014 61/201 Weed and Feed All Fertilizer 6/11/2014 Feed All Fertilzer Product Feed All Ferfilizer Price per Bag 15.00 20.00 15.50 19.50 15.75 15.50 19.75 10 6/15/2014 Weed and Feed All Ferhlizer 622/2014 Feed All Fertilzer 6/28/2014 Feed All Fertilzer 6 C812014Weed and Feed Al Fertiizer 20 10 10 10 10 All purchases are paid in cash at the fime of the purchase and Jim picks up the fentízer from the aistributor, so there is no freight charge. Sales Data (sunmarized by week) Date /9/2014 6/9 /2014 6/16 2014 Feed All Feriizer 5/16/2014 Weed ana Feed All Fertilizer 6/23/2014 Feed All Fertilzer 6/23/2014weed and Feed All Fertizer 5/30/2014 Feed All Fertilzer Product Feed All Fertiizer weed and Feed All Fertilizer eed ano Feed All 10 ?? All saies are on credin n addition to the soes, on 6/2 /14, a cus-omer reumed ore bog of-eeo ALFerrizer 10 Jim for i creair on acoount Instructions: 1 Cacuote the Cost of Gooas soia ond toe Ending inventory voues for tre fertilizer produpts unger 1) Average Cost 2 First-in. First-OuT(AFO), ono 3) Lost-in. First- rou wis neeo to coieulore eraing inventory from me puronose. sae a given, you may pssume hora physicel oount confirmea your coicuaton of the numce of unis in ending inventoy Assume that im deciaes ro use the FFO meinoa ana compute the ower of morker iLoMi vaue to ce repertea for the ena of June 2014 use me lasr puronase nd rerum oato 2. is compoison.

Explanation / Answer

Working:

Cost of goods available for sale - Feed All Fertilizer 1. Average Cost Date Explanation Units Unit cost Total cost 6/1/2014 Purchase 10 $15.00 $150.00 6/11/2014 Purchase 20 $15.50 $310.00 6/22/2014 Purchase 10 $15.75 $157.50 6/28/2014 Purchase 10 $15.50 $155.00 50 $772.50 Average cost $15.45 Ending Inventory - (50 -35) Units units cost Total cost 15 $15.45 $231.75 Cost of goods available for sale $772.50 Ending Inventory $231.75 Cost of goods sold $540.75 2. FIFO Cost Date Explanation Units Unit cost Total cost 6/1/2014 Purchase 10 $15.00 $150.00 6/11/2014 Purchase 20 $15.50 $310.00 6/22/2014 Purchase 10 $15.75 $157.50 6/28/2014 Purchase 10 $15.50 $155.00 50 $772.50 Ending Inventory - (50 -35) Units units cost Total cost 10 $15.50 $155.00 5 $15.75 $78.75 15 Total $233.75 Cost of goods available for sale $772.50 Ending Inventory $233.75 Cost of goods sold $538.75 3. LIFO Cost Date Explanation Units Unit cost Total cost 6/1/2014 Purchase 10 $15.00 $150.00 6/11/2014 Purchase 20 $15.50 $310.00 6/22/2014 Purchase 10 $15.75 $157.50 6/28/2014 Purchase 10 $15.50 $155.00 50 $772.50 Ending Inventory - (50 -35) Units units cost Total cost 10 $15.00 $150.00 5 $15.50 $77.50 15 Total $227.50 Cost of goods available for sale $772.50 Ending Inventory $227.50 Cost of goods sold $545.00

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.